3/27/2024 – Press Release
3/27/2024 – Civil Action Cover Sheet
3/27/2024 – NeuGen Complaint & Demand for Jury Trial
3/27/2024 – Court’s Scheduling Order
4/18/2024 – MassMutual’s Motion to Transfer to Business Litigation Session
4/24/2024 – NeuGen’s Opposition Brief to Motion to Transfer
5/9/2024 – MassMutual’s Reply Brief in Support of Transfer
5/14/2024 – Court Decision: Denial of Motion to Transfer
5/16/2024 – MassMutual’s Answer to NeuGen Complaint
About NeuGen
Founded in November 2018, NeuGen is a Shared Services organization based out of Madison, Wisconsin. It was created by the not-for-profit WEA Trust, which was created by the Wisconsin Education Association Council (WEAC) to provide insurance and retirement benefits for Wisconsin public school employees.
Frequently Asked Questions
Why has NeuGen filed suit against MassMutual?
Why has NeuGen filed suit against MassMutual?
In August of 2022 NeuGen announced plans to lay off at least 110 employees. Upon NeuGen’s employee layoff, MassMutual declared a total termination of the Agreement and distributed the Fund to the Plan participants at Market Value.
At the time of the termination, the Market Value of the Fund had decreased by a significant amount and was well below Book Value. MassMutual nevertheless proceeded to distribute the Fund at the depressed Market Value and well below Book Value, causing financial damage to the Plan and its participants.
NeuGen, created as a not-for-profit entity by WEA Trust in 2018, witnessed several former employees lose nearly 18% of their retirement savings in 1 day when MassMutual removed NeuGen employees from their MassMutual Stable Value Core investment option and felt something must be done to address this questionable business practice.
How many people were impacted by MassMutual’s actions?
How many people were impacted by MassMutual’s actions?
In total, nearly 300 individuals, including employees, NeuGen retirees and family members were enrolled in the Stable Value Core investment option.
How much did NeuGen employees, their families, and retirees have invested in the Stable Value Core investment option with MassMutual?
How much did NeuGen employees, their families, and retirees have invested in the Stable Value Core investment option with MassMutual?
Approximately $21.5 million
How much was lost by the NeuGen account holders?
How much was lost by the NeuGen account holders?
18% overnight
A total of nearly $3 million was lost by former NeuGen employees, their families, and retirees.
Dozens of participants experienced tens of thousands in losses with some exceeding $150,000.
These losses were magnified as a result of many MassMutual actions.
How many years did MassMutual manage retirement accounts for NeuGen?
How many years did MassMutual manage retirement accounts for NeuGen?
Nearly nine years, December 2013 - August 2022. During this time MassMutual made millions of dollars in profit while promising members a conservative rate of return while MassMutual received substantially more in the market.
What is MassMutual’s Stable Value Core investment option?
What is MassMutual’s Stable Value Core investment option?
A conservative investment option for participants to protect their investments against market fluctuations by providing participants with a stable and predictable book value at which they can withdraw their funds for retirement.
According to MassMutual, “Expected Benefits of Stable Value Core Product”:
- Principal Preservation
- Seeks steady, positive returns in excess of money market rates
- Insulation of participant account values from market fluctuation
What was the average participant’s balance?
What was the average participant’s balance?
Active employee participants held an average account balance of $57,000, while retirees held an average of $117,000.
What was the highest account balance of a NeuGen participant?
What was the highest account balance of a NeuGen participant?
A high of $850,000
Book Value is the value reported to individual participants on periodic statements.
Market Value was well below Book Value due to market conditions and the performance of MassMutual’s investments.
Does NeuGen benefit financially from this lawsuit?
Does NeuGen benefit financially from this lawsuit?
NeuGen is filing this based on a belief regarding what is right and what is wrong. This deliberate action by MassMutual has hurt hundreds of people, costing them millions of dollars – NeuGen entered this to defend former employees who gave so much to their former company.
What will happen next?
What will happen next?
NeuGen filed suit in Superior Court in Massachusetts. NeuGen is hopeful for a swift decision in favor of the nearly 300 people whose retirement savings were affected due to the actions of MassMutual.